LONDON (Reuters) - Tissue Regenix (TRX.L) said on Friday it had raised 40 million pounds ($52 million) by selling new shares to buy CellRight Technologies, a U.S regenerative medicine company that specializes in spine surgery and orthopedics.
The British company struck a deal to buy CellRight after the market closed on Thursday, agreeing to pay up to $30 million for the San Antonio, Texas-based firm.
“It broadens our orthopedics product offering - we have a number of products that are close to launch in the EU and a number of things in the U.S. we are working on that will be complementary - and it also expands our base in the U.S.,” said Tissue Regenix chief executive Antony Odell.
Tissue Regenix’s patented technology removes DNA from animal and human tissue to create a “scaffold” that is accepted by the human body and can be used to repair diseased or worn out body parts, for example in heart valve replacement.
Odell said CellRight had developed a regenerative platform technology focused on bone that was complementary to its own soft-tissue based platform technology.
The company placed 400,000,000 new shares at a price of 10 pence a share, a discount on the 12.25 pence the stock closed at on Thursday. The additional funds after the deal will be used to accelerate the growth of the enlarged group, it said.
Shares in Tissue Regenix were trading at 11.4 pence on Friday.
Reporting by Paul Sandle; Editing by Adrian Croft